Key Highlights

• The market size of the worldwide Freight Forwarding Industry will surpass US$ 199,264.0 million in 2024, and by 2034, it is projected to reach US$ 294,959.4 million, boosting at a CAGR of 4.0%.

• Freight forwarding offers strategic logistics planning and execution on behalf of shippers for the international movement of cargo. Freight forwarders, in particular, will work in areas such as freight negotiation, container search, customs documentation and freight consolidation. Importing and exporting creates a profitable business with the necessary resources to complete the logistics plan. Less than Container Load (LCL) Freight consolidation is a program by shippers where many small items are packed into the same container. In these cases, the shipping fee is distributed among all participants according to the needs of the delivery location. The rise of emerging markets provides an attractive opportunity for the maritime industry. As these sectors grow rapidly and become commercialized, the demand for logistics services also increases. Freight forwarders with a strong presence in these areas will benefit from expanded workflows, thus connecting business to the world's supply chains. By providing reliable transportation, customs expertise and local solutions, shipping companies can position themselves as a key resource for trade and business in these emerging markets.

• In August 2023, Onboard Logistics and Intelligent Logistics Platform Raft has partnered each other. The Onboard Logistics utilize Raft’s platform for the processing of cargo prior to it physical arrival. Due to its implementation, OnBoard Logistics has achieved a capacity three times greater than previous capabilities.

• The rise of emerging markets provides an attractive opportunity for the maritime industry. With the rapid growth and commercialization of these sectors, the demand for logistics services has also increased. Importers with a strong presence in these areas will benefit from expanding operations connecting their businesses to the world's supply chain. By providing reliable transportation, customs expertise and local solutions, shipping lines can position themselves as important resources for business and business in these emerging markets. This situation affects the development of the maritime industry. Changes in fuel prices directly affect shipping costs, affecting the profits of carriers and their customers. Frequent price changes can also slow down the economy by preventing companies from entering into long-term, disruptive shipping contracts for production, forcing companies to find alternative routes. The continued growth of online retailers is creating a need for cross-border shipping, on-time delivery, and quality products. As consumers choose to shop online, online stores and digital businesses are experiencing tremendous growth, changing products and sales. The shift to digital business is often associated with globalization, which creates a competitive market for suppliers. Online stores and e-commerce platforms rely on shipping companies to deliver quality products to customers around the world, often from companies in multiple countries. Relying on professional logistics companies has become an important part of e-commerce delivery.

Scope of the Industry Profile

Segmentation

By Mode of Transport

• Road

• Maritime

• Rail

• Air

By Customer Type

• B2B

• B2C

By Service

• Transportation & Warehousing

• Value-added Services

• Packaging

• Others

By Application

• Retail & E-commerce

• Healthcare

• Food & Beverages

• Media & Entertainment

• Industrial & Manufacturing

• Oil & Gas

• Others

Market Trends

• Growing e-commerce is one of the major trend observed in the market. E-commerce companies source bulk number of products from the manufacturers. Freight forwarders play a key role in coordinating these products, ensuring their movement from the manufacturer to the company's online distribution point or warehouse. This requires managing the complexities of international shipping, customs procedures and laws, which can vary from country to country. There should be a standardized global supply chain management approach. Freight forwarders are important partners in developing transportation, choosing the best mode of transportation (by air, sea or land) and overseeing the delivery process from delivery to live customers. They have the expertise necessary to delve into the complexities of international trade and ensure products operate on time and efficiently.

Market Opportunity

• The freight forwarding industry has gone through many reforms that have directly contributed to its growth. Artificial intelligence integration is becoming popular in the maritime industry. AI collects data in real-time, feeds it into the transportation management system (TMS) and triggers various events that provide updates on the status of the container or delivery. Similarly, the Internet of Things (IoT) allows the shipping industry to track shipments and their status using sensors, databases, and cloud-based systems. Additionally, technologies such as advanced machine learning and cloud solutions have been developed to help increase logistics and operational efficiency. . Intermodal transportation or system is a type of transportation that involves the use of different transportation modes to move goods from one place to another. It can be a combination of two or more of all modes of transportation such as air, land or sea. Currently, logistics service providers are focused on reducing transportation costs and delivering products to customers on time. The number of orders with limited delivery time continues to increase, and logistics companies have adopted centralized transportation to improve chain operation.

Key Players

• Kuehne + Nagel International AG (Switzerland)

• DB Schenker (Germany)

• Bollore Logistics (France)

• DHL Global Forwarding (Germany)

• Nippon Express Co. Ltd (Japan)

• Dsv Global Transports and Logistics (Denmark)

• The Maersk Group (Denmark)

• C.H. Robinson (U.S.)

• Panalpina (Switzerland)

• United Parcel Service (U.S.)

Recent Development

• In August 2023, Onboard Logistics and Intelligent Logistics Platform Raft has partnered each other. The Onboard Logistics utilize Raft’s platform for the processing of cargo prior to it physical arrival. Due to its implementation, OnBoard Logistics has achieved a capacity three times greater than previous capabilities.

• In May 2023: Nippon Express has acquired Firm Cargo. The acquisition is expected to strengthen Nippon Express Group's network in Europe, especially in large production areas in the middle and east, and to increase its sea and air network.

Segment Insights

By Mode of Transportation

The Mode of Transportation segment is segmented into Road, Rail, Air, and Ocean. Ocean transport will account for 25% of the maritime industry and the main focus will be on overs sea transport. Since ocean shipping can transport large items and large containers, it is becoming the first choice of businesses that deal with large items. Industries such as mining, construction and manufacturing benefit from the cost-effectiveness and convenience of transporting heavy machinery, raw materials and other bulk goods by sea, thus increasing their importance in the global supply chain. Air transport is expected to record the fastest Compound Growth Rate during the forecast period. Many interests and factors have led to progress in this field. On top of this, the ongoing globalization of the supply chain has increased the demand for air transportation. As companies expand their operations around the world, the need for fast and efficient transportation increases. Due to its unmatched speed, air transportation has become the first choice of businesses dealing with quality products and time.

By Customer Type

The Customer Type segment is segmented into B2B, and B2C.  The B2B consumer segment will account for the largest share in the freight forwarding market. In B2B business, products often go through a complex journey that involves multiple stages, from raw material procurement to production and distribution. Freight forwarders play a key role in managing the various processes that help coordinate goods across different regions and modes of transportation. Their expertise in optimizing these connected devices gives B2B customers an impact in the market. The growth of the business-to-consumer (B2C) sector has been significant and transformative in recent years. Consumer behaviour has changed recently. Many people are looking for fast and easy delivery options. This change has put great pressure on logistics companies to adapt to the B2C market and provide the necessary services. For example, customers increasingly want same-day or next-day delivery options, allowing shippers to simplify their operations and increase speed and reliability.

Regional Insights

Asia Pacific leads the market, accounting for more than 31.65% of global revenue in 2022. Urbanization and foundation improvement have been instrumental in reshaping the freight-forwarding scene over the locale. The quick pace of urbanization has incited significant speculations in present day transportation systems, cargo sending centres, and mechanically progressed distribution centres, all of which have contributed to improving the proficiency and competitiveness of the cargo sending industry. Besides, the extension of cross-border exchange has played a significant part in moving this development. Nations inside the Asia Pacific have been effectively included in cross-border exchange encouraged by different exchange assertions and financial organizations together. Outstandingly, China's Belt and Street Activity has essentially reinforced exchange network, coming about in an increased request for cross-border cargo sending administrations. The aforementioned factors are expected to drive the Asia Pacific region in the forecasted period.

What to Expect from Industry Profile

1. Save time carrying out entry-level research by identifying the size, growth, major segments, and leading players in the Freight Forwarding market in the world.

2. Use the PORTER’s Five Forces analysis to determine the competitive intensity and therefore market attractiveness of the Global Freight Forwarding market.

3. Leading company profiles reveal details of key Freight Forwarding market players’ global operations, strategies, financial performance & their recent developments.

4. Add weight to presentations and pitches by understanding the future growth prospects of the Global Freight Forwarding market with forecast for decade by both market share (%) & revenue (USD Million).